In theory everything has a useful life and depreciates over time, even tools.
If the tools are hand tools, you can take their cost as a deduction under supplies along with the paper/ink, etc. These smaller purchases are handled as Business Expenses.
If the tools are large purchases (typically more than $200) you can enter them as assets and depreciate them over time. For tax purposes, larger purchases (typically more than $200), such as computers, furniture, or equipment are depreciated. Such items are used in your business for longer than a year. These items are tracked in the Business Asset section.
TurboTax will give you several options including the 179 deduction and the De Minimis election for assets under $2,500, as well as depreciating the asset over several years.In theory everything has a useful life and depreciates over time, even tools.
If the tools are hand tools, you can take their cost as a deduction under supplies along with the paper/ink, etc. These smaller purchases are handled as Business Expenses.
If the tools are large purchases (typically more than $200) you can enter them as assets and depreciate them over time. For tax purposes, larger purchases (typically more than $200), such as computers, furniture, or equipment are depreciated. Such items are used in your business for longer than a year. These items are tracked in the Business Asset section.
TurboTax will give you several options including the 179 deduction and the De Minimis election for assets under $2,500, as well as depreciating the asset over several years.